St Casimirs Mortgage Minute

Alternative Mortgage Lenders Are Changing Home Buying

Alternative mortgage lenders are having a big impact on home buying in many U.S. markets. The two main goals of non-bank companies without customer deposits is to offer mortgage rate transparency and help borrowers complete the home loan process quickly and mostly online. Many are locally owned and family-run businesses serving their hometowns, and they often face fewer federal regulations and welcome borrowers with less-than-perfect credit. Alternative mortgage lenders now account for 45 percent of all home loans, the largest share in 20 years, according to the Federal Reserve. The increase comes as the biggest banks back away from the mortgage industry, citing low profit margins and high legal risks. Credit unions, meanwhile, are playing a bigger role in the mortgage market. The CUNA Mutual Group reports that credit unions originated over 8 percent of U.S. mortgages last year, almost double the amount in 2010.

From "Alternative Mortgage Lenders Are Changing Home Buying"
Christian Science Monitor (01/10/16) Bundrick, Hal M.